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A company purchased property for a building site. The costs associated with the property were: purchase price..........................................175000 real estate commissions............................15000 legal fees........................................................800 expense of clearing
A company purchased property for a building site. The costs associated with the property were:
purchase price..........................................175000
real estate commissions............................15000
legal fees........................................................800
expense of clearing the land........................2000
expense to remove old building...................1000
What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
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